Hi
First of all, let me congratulate you for your new toy, you are going to love it.
Now for the questions:
1 – No. Pdf is slower, and plain images pdf’s are even slower;
2 – If you want them nicely formatted, with a front image (as a pBook jacket), table of contents, chapters beginning in a new page, etc… I advise you to convert, at least the ones you will be reading again. If you like to read, plain and simple, do not convert, the Cybook reads txt files perfectly well;
3 – Mobipocket Reader (my personal choice) – the converting program is free and you can import the files directly if you have Microsoft Word in your computer. If not, just open your rtf files in a office editor and save it in html, then build the Mobipocket eBook from that htm file and associated images if they exist.
And about the light: no.
You can hide it by using a protective cover.
My advice – get a protective cover, you will feel much better using your Cybook.
Good reading,
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